NORTHERN DRILLING CANCELS RESALE CONTRACT FOR THE DRILLSHIP WEST AQUILA

August 18, 2021

West Aquila Inc., the 100% owned subsidiary of Northern Drilling Ltd (NODL), has notified Daewoo Shipbuilding & Marine Engineering Co. Ltd (DSME) that it has cancelled the resale contract for the 7th generation ultra deepwater drillship West Aquila due to delay of delivery as well as repudiatory breach of contract.
West Aquila Inc. has made advance payments totaling approximately $90 million under the contract, and will claim a refund of the instalment paid, plus interest and damages. If this claim is disputed, the Company will seek an award via London arbitration in accordance with industry standard procedures and timescales.
In May 2018 the Norwegian tycoon John Frederiksen agreed to buy two 7th generation ultra-deepwater drillships, the West Aquila and the West Libra from South Korea’s DSME.
In October 2019 Northern Drilling cancelled the resale contract for West Cobalt due to various reasons including repudiatory breach of contract by DSME.
The company recently completed a spin-off its two harsh environment rigs, West Mira and West Bollsta, together with related operating companies through its wholly-owned subsidiary Northern Rig Holding Ltd. The company has been renamed Northern Ocean Ltd. (NOL).
(Source: Northern Drilling)